Bitcoin Steadies at $52,000 Amid Volatility Predictions and Spot Buyer Return
Summary:
As the trading week closed on Feb. 18, Bitcoin's activity found balance around the midpoint of an intraday trading range, energized by bullish weekend trading. The data shows Bitcoin price stabilizing at around $52,000. Noted trader Skew commented on a shift in trader attitudes and the return of spot buyers. Despite a record high of $6.8 billion open interest on Bitcoin futures markets indicating upcoming volatility, other traders highlight the surge since October has maintained a healthy leverage balance. Skew emphasized on maintaining Bitcoin's upward trajectory, and analyst Matthew Hyland pointed to the crucial $49,000 mark to uphold for the close.
As the trading week concluded on Feb. 18, Bitcoin's (BTC) activity hovered around the midpoint of an intraday trading range, energized by bullish weekend trading. TradingView and Cointelegraph Markets Pro data pointed to $52,000 as the cornerstone for Bitcoin price stabilization. Despite a tumble down to a several-day low of $50,680 on Bitstamp, BTC recovered quickly, adding approximately $1,500 to its value soon after.
The patterns of the past week's trading were scrutinized by renowned trader Skew, identifying a shift in trader attitudes towards the end of the Wall Street trading week. He noticed that spot buying diminished over the weekend, replaced by a pattern of dips and bounces fueled mainly by takers. Skew also observed the return of some spot buyers, with Binance's spot market in the lead.
Record open interest (OI) on the Bitcoin futures markets of CME Group, hitting an all-time high of $6.8 billion, suggests upcoming volatility, as informed by tracking service CoinGlass. On the other hand, expert trader Daan Crypto Trades noticed a divergence when OI was expressed in BTC and claimed that the surge since October has maintained a healthy leverage balance.
Skew already noted that moving forward, it's crucial for bulls to maintain Bitcoin's Relative Strength Index's upward trajectory on 4-hour timeframes. The 21-period exponential moving average, presently around $51,500, is also key to watch. He highlighted the need for robust spot demand amidst dips and a dominance of limit buying over taker selling.
Analyst Matthew Hyland echoed these sentiments, pointing to the $49,000 mark as a critical threshold to uphold for the close. However, it's important to note that all investment and trading movements carry a certain degree of risk, and readers should undertake thorough research before making any decisions.
Published At
2/18/2024 4:18:09 PM
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